U.S., European Markets, Commodities Flat

Bikram Pandey
02 Feb, 2011
New York City

U.S. stocks were lackluster after a strong finish yesterday as events in Middle East overshadowed earnings parade. European indexes traded sideways as crude oil and copper and silver traded near their highs. Electronic Arts rose on forecast and Time Warner gained on 22% rise in earnings.

[R]4:00 PM New York – U.S. stocks were lackluster after a strong finish yesterday as events in Middle East overshadowed earnings parade. European indexes traded sideways as crude oil and copper and silver traded near their highs. Electronic Arts rose on forecast and Time Warner gained on 22% rise in earnings.[/R]

U.S. stocks struggled in trading after private sector added 187,000 jobs in January. Services added 166,000 jobs. U.S. auto sales in January increased 17%. AOL, IAC/InterActiveCorp and The Nasdaq OMX Group earnings rose.

AOL revenues decreased 26% to $596.0 million. Broadcom revenues increased 45% to $1.95 billion. Time Warner fourth quarter total revenues increased 8% to $7.8 billion. Whirlpool reported fourth quarter total sales increased 4% to $5.0 billion.

European markets closed mixed with a lower bias after several Scandinavian companies reported earnings misses. Atlas Copco, Scania and Sandvik fell on lower than expected results. BMW and Mercedes-Benz said U.S. sales rose more than 11%.

UK stocks led the European markets as resource heavy index gained more than 0.5%. UK construction activity rebounded in January after a weather-related slowdown in December. Imperial Tobacco quarterly sales rose 5% and ICAP Plc guidance met market estimate.

Stocks in Tokyo gained more than 1.5% for the second day in a row as companies report better than expected earnings. Resource linked stocks gained after copper and nickel trade higher. Nomura, Casio, NTT Data report higher earnings. Toyota, Nissan and Honda U.S. auto sales increase more than 13%.

Stocks in Mumbai bounced off from the lows on higher auto sales and rising corporate profits but investors worried that elevated commodities prices and inflation may hobble future earnings. Jet Air net rose 12% and Bajaj Auto unit sales rose 18%.

Bajaj Auto declined after January sales rose 18% to 313,583 units. Hero Honda plunged 5% after third quarter net profit declined 20%. NMDC third quarter net profit soared 81.4% to Rs 1518.03 crore.

Australian stocks closed higher as metals and crude oil prices rise in international markets. Insurers face another round of losses as Cyclone Yasi approach eastern shores. Copper, tin and nickel surged as mines in Queensland shutdown.

Commodities, Currencies and Yields

Dollar edged up against euro to $1.378 and gained against the Japanese yen to 81.71. One UK pound fetched $1.614.

Crude oil increased $0.19 to $90.96 a barrel for a front month contract, natural gas edged lower 0.08 cents to $4.43 per mBtu and gasoline decreased 2.2 cents to 249.65 cents.

Gold decreased $5.70 in New York trading to at $1,334.60 per ounce, silver decreased $0.16 to $28.34 per ounce and copper for the front month delivery increased 0.55 cents to $4.55 per pound.

Yield on 10-year U.S. bond increased to 3.49% and on 30-year U.S. bond yield rose to 4.65%.